Nokia emerges as mobile phone leader

Worldwide mobile phone sales totaled 251 million units in the third quarter of 2006, a 21.5 percent increase from the same period last year, according to Gartner Inc. Third quarter sales in Asia/Pacific, especially India and China, rose dramatically and drove overall growth upwards. Asia/Pacific was the fastest growing region this quarter. Nokia, Motorola and Samsung accounted for 68 percent of worldwide mobile sales in the third quarter of 2006.

Nokia retained its worldwide No. 1 position with 35.1 percent market share, gaining 2.6 percentage points compared to the same period last year (see Table 1). Nokia increased its market share in all regions except North America, and also regained the top spot in Latin America after losing it to Motorola a year ago.

While Motorola increased its worldwide market share in the third quarter of 2006, the company experienced challenges in some regions. It lost the No. 1 spot in Latin American and its No. 2 position in Western Europe and in the Eastern Europe, the Middle East and Africa region. The Krzr is struggling to enjoy the same reception that greeted the Razr, and the Motofone may not be available until 2007. Christmas might not be so jolly for Motorola in some markets.

After a shaky first half of the year, Samsung recorded a healthy third quarter with sales accounting for more than 30 million units. Thanks to products such as the D900 and E900, Samsung was able to regain second place in the markets in Western Europe, Eastern Europe, the Middle East and Africa. Samsung has won consumers back thanks to finding a more personal approach to design and features and by embracing the trend for slim devices, Ms Milanesi said.

Sony Ericsson had an exceptional quarter selling 19.4 million units in the third quarter of 2006 and gaining one percentage point year-on-year, Ms Milanesi added. The companys success was a result of building a wider portfolio of successful products rather than counting on a single product. It also focused on better planning to avoid the supply problems that have limited its potential in the past.

The success of LGs KG800 Chocolate started to melt away this quarter, leaving the manufacturer further behind Sony Ericsson in the worldwide ranking. LG needs to expand its portfolio quickly to move up from fifth place.

BenQ declared that it was stopping payments to its German subsidiary, BenQ Mobile, at the end of September 2006, barely a year after its formation from Siemens' handset business. BenQ Mobile in Germany has filed for insolvency. In the three months before, it recorded sales of slightly more than 6 million units.
11/24/2006 4:38:07 PM
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